Assessment Of The Practice of Due Deligence in Carrying out Mortgage Valuations in Uganda
Abstract
Mortgage”includesanychargeorlienoverlandoranyestateorinterestinlandin
Ugandaforsecuringthepaymentofanexistingorfutureoracontingentdebtor
othermoneyormoney’sworthortheperformanceofanobligationandincludesa
Second or subsequent mortgage, a third partymortgageand a sub mortgage
(mortgageact2009).Asvaluerscarryoutvaluationformortgagepurposes,they
shouldbeawareofthepracticeofduediligence.Duediligencecouldbedefinedas
Anobligationheldbythevaluerwhenheentersintoanagreementtofulfilacertain
Valuationtasktoactwithinacertainstandardofcare.
Professionalliabilityisalegalobligationheldbyvaluersarisingoutofprofessional
Errorsandnegligentactsoromissionsduringthecourseofexecutingprofessional
duties.Thisliabilityliesinanyprofessionandthusprofessionalregulatorybodies
havethedutyto ensure thatalllicensed and practicing firm stake indemnity
insurancecovers.Theliabilityheldbyvaluersinpracticeisgreatlybroughtaboutby
Incompetence in practice due to less experience and poor qualifications,
Inconsistency and unsystematic nature in the way tasks are accomplished.
Ignorance, failure to exercise duty of care to client sin contract
And third parties aswellas due diligence while conducting valuations for different
Purposes also leads to this liability.